1. 9-1 Organizational Design, Competences, and Technology Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall

2.  Identify what technology is and how it relates to organizational effectiveness  Differentiate among three different kinds of technology that create different competences  Understand how each type of technology needs to be matched to a certain kind of organizational structure if an organization is to be effective 9-2

3. Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall  Understand how technology affects organizational culture  Appreciate how advances in technology, and new techniques for managing technology, are helping increase organizational effectiveness 9-3

4. Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall  Technology: The combination of skills, knowledge, abilities, techniques, materials, machines, computers, tools, and other equipment that people use to convert or change raw materials into valuable goods and services 9-4

5. Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall  Technology exists at three levels  Individual level - The personal skills, knowledge, and competences that individuals possess  Functional or department level - The procedures and techniques that groups work out to perform their work and create value  Organizational level - The way an organization converts inputs into outputs 9-5

6. Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall  Technology is present in all organizational activities:  Input: Allows each organizational function to handle relationships with outside stakeholders  Conversion: Transforms inputs into outputs  Output: Allows an organization to effectively dispose of finished goods and services to external stakeholders 9-6

7. Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 9-7

8. Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall  Programmed technology: A technology in which the procedures for converting inputs into outputs can be specified in advance  Tasks can be standardized and the work process can be made predictable 9-8

9. Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall  Technical complexity: The extent to which a production process can be programmed so that it can be controlled and made predictable  High technical complexity - Exists when conversion processes can be programmed in advance and fully automated  Low technical complexity - Exists when conversion processes depend primarily on people and their skills and knowledge and not on machines 9-9

10. Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall  Woodward identified 10 levels of technical complexity that are associated with three types of production technology:  Small-batch and unit technology  Large-batch and mass production technology  Continuous-process technology 9-10

11. Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 9-11

12. Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall  Technological imperative: The argument that technology determines structure  For small organizations the importance of technology as a predictor of structure may be more important than it is for large organizations 9-12

13. Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall  Perrow’s two dimensions underlie the difference between routine and nonroutine or complex tasks and technologies:  Task variability: The number of exceptions— new or unexpected situations—that a person encounters while performing a task  Task analyzability: The degree to which search activity is needed to solve a problem 9-13

14. Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 9-14

15. Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 9-15

16. Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall  Task interdependence: The manner in which different organizational tasks are related to one another affects an organization’s technology and structure  Three types of technology  Mediating  Long-linked  Intensive 9-16

17. Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 9-17

18. Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall  Mass production is based on:  Dedicated machines: Machines that can perform only one operation at a time, such as repeatedly cutting or drilling or stamping out a car body part  Fixed workers: Workers who perform standardized work procedures increase an organization’s control over the conversion process 9-18

19. Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall  Mass production:  Attempts to reduce costs by protecting its conversion processes from the uncertainty of the environment  Makes an organization inflexible  Fixed automation is a combination of dedicated machines and fixed workers 9-19

20. Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall  Advanced manufacturing technology: Technology which consists of innovations in materials and in knowledge that change the work process of traditional mass- production organizations 9-20

21. Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 9-21

22. Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 9-22

23. Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall  Materials technology: Comprises machinery, other equipment, and computers  Organization actively seeks ways to increase its ability to integrate or coordinate the flow of resources between input, conversion, and output activities 9-23

24. Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall  Computer-aided design (CAD): An advanced manufacturing technique that greatly simplifies the design process  Computers can be used to design and physically manufacture products 9-24

25. Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall  Computer-aided materials management (CAMM): An advanced manufacturing technique that is used to manage the flow of raw materials and component parts into the conversation process  Develops master production schedules for manufacturing and controls inventory 9-25

26. Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall  Just-in-time inventory (JIT) system: Requires inputs and components needed for production to be delivered to the conversion process just as they are needed  Input inventories can then be kept to a minimum  CAMM is necessary for JIT to work effectively  Increases task interdependence between stages in the production chain 9-26

27. Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 9-27

28. Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall  Technology that allows the production of many kinds of components at little or no extra cost on the same machine  Each machine is able to perform a range of different operations  Machines in sequence able to vary operations so that a wide variety of different components can be produced 9-28

29. Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall  An advanced manufacturing technique that controls the changeover from one operation to another by means of commands given to the machines through computer software  Depends on computers programmed to:  Feed the machines with components  Assemble the product from components and move it from one machine to another  Unload the final product from the machine to the shipping area  Use of robots integral to CIM 9-29

30. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America. Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 9-30